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Gold Rises for 5th Straight Day!
Gold rose for the fifth straight day as a surge in energy prices renewed concern the pace of inflation may accelerate.
Gold for immediate delivery yesterday touched $468.65 an ounce, the highest since January 1988, as oil prices jumped 7 percent on concern Tropical Storm Rita may strengthen into a hurricane before striking Texas. Investors buy gold to hedge against inflation, which erodes the value of other fixed-asset investments, such as bonds.
`Speculators continued to buy on the back of inflationary worries and uncertainty about the U.S. economy,' Darren Heathcote, head of trading at N.M. Rothschild & Sons (Australia) Ltd., said in a report e-mailed today.
$525 an Ounce?
Gold for immediate delivery may rise as high as $470 an ounce this quarter, from a previous forecast of $450, Barclays Capital said in a weekly report e-mailed yesterday from London.
Barclays Capital, the investment-banking arm of Barclays Plc, is one of the nine market-making members of the London Bullion Market Association.
Newmont Mining Corp. President Pierre Lassonde expects gold to rise to $525 an ounce by January, according to an interview published yesterday in Le Temps.
Gold prices will then stabilize within a range $25 higher or lower than $525, Lassonde told the Geneva-based newspaper. The surge in prices will be triggered by a depreciation in the dollar, the newspaper quoted him as saying.
Stay tuned.
